enforce labour laws. The creation of the ILO in 1919 marked a clear watershed, with
many labour ministries coming into being after this date. A concomitant trend was the
formation of national labour inspection systems, with powers to enforce the law,
which were set up in countries including Brazil, France, India, Italy, Malaysia, Spain,
Sri Lanka and the United Kingdom.
Since those early years of the twentieth century, most countries have
maintained a viable and active labour administration system responsible for all
aspects of national labour policy formulation and implementation. In addition, labour
administrations in ILO member States have contributed to compliance with
international labour standards by means including the collection of labour statistics,
which are invaluable in identifying needs and formulating labour policy at both
national and international levels.
Globally, public administration has attracted criticism from various quarters as
embodying the stranglehold of the State, blocking the operation of free markets and
being marred by bureaucratic inefficiency, rigidity and high costs. These arguments
were based on two fundamental assumptions about free markets: first, that they were
sufficient to achieve economic growth; second, that they were sufficient to achieve
social stability and political democracy. From the mid-1990s onwards, however,
confidence in the view that markets would adjust better and faster with minimal state
involvement started to diminish. This increasing doubt was prompted by recession in
the transition economies of Central and Eastern Europe and financial crises in Asia
and Latin America, as well as the failure to stimulate growth in Africa. Concern about
social inequality within and among countries has also re-emerged, especially in the
wake of the most recent financial global crisis in late 2008.1
At the global level, poverty reduction, the fostering of social cohesion and job
creation made their way back on to the political agenda after the 1995 World Summit
for Social Development in Copenhagen and were prominent in discussions at the
Millennium Summit of 2000 and the World Summit in 2005 that marked the 60th
anniversary of the United Nations. Throughout all these deliberations a growing
concern became evident on the part of many countries, enterprises and civil society
groups to promote the principle of decent work a focus that gave fresh impetus to
the role of labour administration.
Within this broad framework of promoting good governance at national level, labour
ministries have a pivotal role to play, as they can influence governance from the level
of the individual workplace to that of the whole national labour market.
Labour administration today operates in a very rapidly changing environment
characterized by dramatic economic, institutional and political transformations,
including changing patterns of production, work organization and employment
structures, increased labour migration, delocalization of production sites and the
expansion of informal economy, to mention just a few factors. At the same time,
governments are under increased pressure both to reduce public spending and to
improve public service delivery. At the same time as these changes are adding to the
challenges with which labour administration has to deal, the demand for its services is
on the increase. The effectiveness and quality of those services depend on the means
available, on the organization and functioning of the system and on the coherence of
the national labour policy.
There are, of course, different labour administration practices around the
world, reflecting different historical, political and administrative backgrounds and
governance systems. The variety of labour administration practices are reflected to
some extent in the Labour Administration Convention, 1978 (No. 150), and its
accompanying Labour Administration Recommendation, 1978 (No. 158).
The ILO is committed to strengthening labour ministries with a view to
developing labour administration based on international labour standards, as
embodied in the ILO Conventions and Recommendations. This it does through the
practical means of projects and programmes aimed at enabling labour administration
to perform its functions better at all levels: at the local level, to be sensitive to the
2
changing needs of its users; at the national level, to be capable of adapting to the
contextual environment and anticipating changes; and at the international level, to
meet the challenges resulting from changes by forecasting long-term developments
and devising strategies for the future. Technical cooperation activities, involving
training and retraining, are also undertaken to improve the quality and skills of labour
administration staff. The ILOs tripartite principle has a significant influence on the
development of labour administration by acknowledging workers and employers as
equal partners with governments on labour and economic issues.